Hong Kong home prices rise for sixth consecutive month, setting stage for 2026 rebound

Hong Kong's lived-in location prices roseate for a sixth consecutive period successful November, extending a betterment that began successful the 2nd 4th and pointing to a perchance much sustained rebound from mid-2026 arsenic argumentation enactment and easing rates assistance marketplace confidence.

The authoritative location terms scale climbed to 297.3 successful November, the highest level successful 16 months and conscionable shy of the 297.6 recorded successful July past year, according to the Rating and Valuation Department.

Prices person gained 3.52 per cent truthful acold this year, marking a wide betterment from 2024, erstwhile values continued to descent amid anemic request and choky financing conditions.

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Prices roseate 0.9 per cent period connected period successful November, supported by expectations of further interest-rate cuts, easing US-China commercialized tensions, a rebound successful the banal marketplace and beardown new-home sales, analysts said.

Looking ahead, terms maturation was expected to mean successful December aft a beardown tally earlier successful the quarter, arsenic marketplace sentiment was shaken precocious successful November by a deadly occurrence astatine Tai Po's Wang Fuk Estate, which claimed astatine slightest 161 lives and weighed heavy connected nationalist mood. Attention besides shifted towards the Legislative Council election, contributing to a impermanent intermission successful transactions.

"As a result, December's terms summation is apt to constrictive to astir 0.5 per cent," said Derek Chan, caput of probe astatine Ricacorp Properties. Chan said location prices were inactive connected way to emergence astir 3.3 per cent for the afloat year, wiping retired the downtrend of the erstwhile 3 years.

He added that prices successful the 2nd fractional of the twelvemonth were expected to station a 4.2 per cent gain, the strongest half-year show since the 2nd fractional of 2019. Despite the recovery, prices stay 25.3 per cent beneath the September 2021 peak.

The sustained uptrend began successful April aft the authorities lowered stamp duty, triggering a pickup successful transactions. Since then, developers had sold much than 1,600 caller homes per period connected average, spot consultants said.

However, analysts cautioned that terms maturation remained constrained by a ample banal of unsold homes accumulated aft prices fell sharply from their 2021 peak. Developers person prioritised clearing inventory, often launching projects astatine oregon adjacent marketplace prices with discounts and financing incentives.

First-hand location income reached 18,736 units successful the archetypal 11 months of the twelvemonth and were expected to emergence to astir 20,000 units by year-end, the highest since transaction disclosure rules were introduced successful 2013, according to Midland Realty. Flats priced beneath HK$10 cardinal (US$1.3 million) are estimated to relationship for astir 87 per cent of superior marketplace transactions this year.